HIGH POINT, N.C. -- Leave it to La-Z-Boy and Microsoft to find a way to surf with your feet up.
The companies unveiled the "e-cliner," a plush recliner with Microsoft's WebTV hard-wired into the armrest during opening day of the International Home Furnishings Market in High Point, N.C., on Thursday.
"I usually fall asleep watching TV in one of these recliners, so now I guess I can surf the Web in my sleep, too," said one retail buyer looking over the recliner at La-Z-Boy Inc.'s showroom here.
The e-cliner will retail from $999 upholstered to $1,299 for the leather version, complete with the WebTV keyboard console, set-top box, and two month's free WebTV service.
Although the e-cliner, dubbed the "Explorer," generated some buzz for the company's recliner business, the roll-out comes as La-Z-Boy works to integrate recent acquisitions that have diversified its product offerings and boosted revenues for the furniture maker.
Gerald Kiser, La-Z-Boy president and chief operating officer, said the company expects to meet analysts' estimates of 48 cents a share earnings in the fiscal fourth quarter ending April 30.
The company reported $1.10 a share earnings through the third quarter, and fourth quarter earnings of 48 cents a share would put them comfortably in the $1.58-$1.60 a share range projected by First Call analysts.
"We feel comfortable with that 48-49 cents that they're projecting" for the fourth quarter, he said.
La-Z-Boy has been growing revenues through a series of acquisitions that have transformed the Monroe, Michigan-based company widely known for its line of recliners, into the nation's largest manufacturer of residential furniture.
The company added about $600 million in annual revenues through its acquisition of LADD Furniture Inc., which closed in late January. That deal came on the heels of acquisitions of Bauhaus USA Inc., and Alexvale Furniture, which added a combined $160 million in annual revenues.
Kiser said the company will generate $80 million in free cash flow in fiscal 2001, and will use some of that to repay debt and buy back shares, while continuing with plans to open 30-35 new stores a year.
"It gives us a lot of flexibility," he said.
